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crimeas [40]
3 years ago
10

If both interest rate parity and the international Fisher effect hold, then between the forward rate and the spot rate, the ____

rate should provide more accurate forecasts for currencies in ____-inflation countries.
Business
1 answer:
trasher [3.6K]3 years ago
3 0

Answer:

The correct answer is forward; high.

Explanation:

A spot rate is the settlement price agreed in a spot contract, which facilitates the purchase and sale of a good, value or currency on the spot date, which is normally two business days after the trading date. On the other hand, a forward rate is the settlement price in a forward contract, which facilitates the purchase and sale of a good, value or currency when the terms are agreed but delivery and payment will occur at a future date.

Buyers and sellers look for a spot rate to make an immediate purchase or sale. A forward rate is considered to be market expectations for future prices. It can serve as an economic indicator of how the market expects the future to perform, while spot rates are not indicators of market expectations and are instead the starting point for any financial transaction.

Therefore, it is normal for forward rates to be used by investors, who may believe they have knowledge or information about how the prices of specific items will move over time. If a potential investor believes that actual future rates will be higher or lower than the forward rates established on the current date, it could indicate an investment opportunity.

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A second mover: a.is typically ineffective in its response to a first mover. b.attempts to provide a product with greater custom
Viktor [21]

Answer:

b. attempts to provide a product with greater customer value than the first mover.

Explanation:

In marketing, it is believed that the first mover gains an edge over the followers. A first mover is the initial entrant and provider of products and services catering to a marketing segment.

A second mover refers to the immediate next of the first mover. The advantage second mover has over the first mover being, it can analyze the response the first mover generated and effectively gauge what went right and what went wrong for the first mover.

This way, the second mover can provide improved products than the first mover by not committing same errors as the first mover.

5 0
3 years ago
Amounts withheld from each employee for social security and medicare vary by state.
satela [25.4K]

It is False.

No matter which states the employee lives, the amounts withheld from each employee for social security and medicare do not vary by state. The present tax rate for social security for employers and employees is 6.2% and the present current rate of medicare is 1.45% for both the employer and employee.

Employers are typically required to withhold Social Security and Medicare taxes from an employee's paycheck and pay the employer's share of those taxes.

The Social Security Tax and the Medicare Tax have different rates, and only the Social Security tax has a salary cap. The base salary ceiling is the maximum taxable salary in the year. Determine the withholding amount for Social Security and Medicare contributions by multiplying each payment by the employee's tax rate.

To learn more about social security and medicare from given link

brainly.com/question/19277833

#SPJ4

3 0
2 years ago
Hemingway Corporation has 100,000 shares of common stock issued and outstanding. At the meeting of the board of directors on Dec
DaniilM [7]

Answer:

See the journal entry below

Explanation:

Retained earnings A/c Dr $500,000

Dividends payable A/c Cr $500,000

Here, cash dividend is being declared by the board on 100,000 shares hence the account of retained earnings is debited and account of dividends payable is credited.

NB.

Amount = Share × Price per share

Given that;

Share = 100,000

Price per share = $5

Amount

= 100,000 × $5

= $500,000

4 0
3 years ago
in a class of p student the average mark is n and in another class of q student the average mark is n. calculate the average mar
lesantik [10]

Answer: The average mark is n.

Explanation: The average mark is a average of averages. The average mark of class of p student is n, and q student is n, so n+n/2= 2n/2=n.

4 0
3 years ago
bought 2,000 shares of Print Company stock for $12,780. She sold the stock for $7 per share and paid a sales commission of $26.
Svetach [21]

Answer:

$1,194

Explanation:

The buying price of the shares was  $12,780

The selling price was $7 dollars for each.

The total amount realized is 2000 share  x $ 7

=$14,000

The commission paid is $26

Net amount obtained is $14,000 -$26

=$13,974

Profit will be $13,974 -$12,780

=$1,194

6 0
3 years ago
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